An introduction to germanium

Germanium demand and end-uses

The germanium market is experiencing robust growth, driven by its expanding use across high-tech industries. Once a niche semiconductor material, germanium has become essential in a range of advanced applications thanks to its unique electrical and optical properties. Before examining specific end-uses, it is important to consider the current market landscape, demand trends, and future outlook for this increasingly strategic metal.

The Asia-Pacific region dominates the global germanium market, both as the leading producer and largest consumer. This is underpinned by major electronics manufacturing hubs in China, Japan, South Korea, and India, extensive deployment of fibre optic infrastructure, and China’s position as the world’s top producer, accounting for around 60% of total output.

North America represents the fastest-growing regional market, fuelled by demand in aerospace, defence, and renewable energy. Investment in 5G infrastructure, requiring germanium-doped fibre optics, as well as thermal imaging and satellite solar panels for military and space applications, is driving growth.

Europe maintains a strong market presence, with countries such as Germany and France investing heavily in renewable energy and advanced manufacturing, both of which utilise germanium-based technologies.

Telecommunications is the largest end-use sector for germanium, representing around 50–54% of global consumption. Germanium dioxide (GeO₂) acts as a key dopant in the silica core of fibre optic cables, enhancing refractive index and enabling high-efficiency signal transmission over long distances with minimal loss. Germanosilicate glass has been the preferred core material for over three decades due to its superior properties.

The global rollout of 5G and high-speed internet continues to drive demand for germanium-based fibre optics. Specialised applications include Raman lasers, amplifiers, dispersion compensators, and fibre Bragg grating arrays, optical components consisting of multiple fibre Bragg gratings (FBGs) embedded along a single optical fibre. These gratings act as wavelength-specific reflectors, enabling precise filtering and signal control in both telecommunications and sensing applications.

Infrared optics constitute the second-largest application. Germanium’s infrared transparency makes it ideal for lenses and windows in thermal imaging systems, FLIR devices, military night vision equipment, and infrared spectroscopic tools.

Demand in this segment is accelerating due to the rise of advanced driver assistance systems (ADAS) and autonomous vehicles. Once limited to military and industrial use, germanium-based infrared optics are increasingly used in mainstream automotive safety systems, with broader adoption expected in mid-range vehicles.

Electronics and solar applications are among the fastest-growing segments. While silicon has replaced germanium in many consumer devices, it remains crucial in specialist applications such as silicon-germanium (SiGe) alloys for high-speed integrated circuits, RF amplifiers, and high-frequency components that benefit from its high electron mobility. Germanium-based transistors are also valued for their performance at high frequencies, and high-purity germanium is essential in gamma-ray and X-ray detectors used in security and scientific research.

Demand is especially strong in technologically advanced nations including Japan, South Korea, and Western countries focused on next-generation electronics.

In solar technologies, germanium is a critical material for high-efficiency photovoltaic systems, particularly in space. It acts as a substrate for the epitaxial growth of III-V semiconductors used in multi-junction solar cells, forms part of concentrated photovoltaic (CPV) systems, and serves as a semiconductor base for satellite solar arrays. Growing investment in renewables and space-based solar power is further strengthening demand for high-performance germanium applications.

A significant portion of global germanium consumption is driven by its use as a polymerisation catalyst, particularly in the production of polyethylene terephthalate (PET). This application is especially prominent in Japan, where germanium catalysts are favoured for producing exceptionally clear and high-quality PET bottles. The material enhances polymerisation efficiency and final product appearance, although future demand may face pressure from emerging alternative catalyst technologies.

Emerging applications are broadening germanium’s market scope. In healthcare and biomedicine, germanium compounds are being studied for their potential in immune support, oxygen enrichment, pain relief, and heavy metal detoxification. Research is ongoing into uses in cancer treatment, arthritis therapy, and antiviral responses.

In advanced electronics and quantum computing, institutions such as TU Wien have demonstrated germanium’s potential in enabling faster and more efficient computing technologies. Its properties offer pathways to overcome limitations of traditional silicon-based systems.

Other cutting-edge developments include light-emitting hexagonal SiGe alloys, which could enable on-chip lasers and revolutionise data transfer by using light rather than electrical current. Germanium is also finding new roles in nanowire production, unlocking possibilities in future materials and device design.

Germanium supply

The germanium market faces significant supply challenges that directly influence both price and availability. Germanium is not mined as a primary commodity; it is mainly recovered as a by-product of zinc ore processing, and to a lesser extent, from coal fly ash and copper refining. This by-product nature makes its availability highly dependent on the production levels of these host materials, particularly zinc, making supply inherently vulnerable to fluctuations in the broader base metal markets.

Global germanium supply is also highly concentrated, with China accounting for the majority of both production and refining capacity. This has raised ongoing concerns about supply chain security, especially for countries reliant on germanium imports to support industrial, technological, and defence sectors.

Geopolitical dynamics further complicate the supply outlook. In August 2023, China imposed export restrictions on germanium and gallium, citing national security concerns. This triggered a sharp price rally, pushing prices to near-record levels and highlighting the fragility of the global supply chain. These restrictions came amid already rising demand, amplifying supply pressures across multiple industries.

China remains the dominant global producer and exporter of germanium. Production is largely tied to zinc smelting operations in provinces such as Yunnan and Inner Mongolia. In addition to controlling the raw material supply, China also leads in refining and processing capacity, exporting germanium in various forms, including metal, dioxide, and high-purity optical grades. The country’s export controls, production quotas, and stockpiling strategies have further reinforced its strategic grip on the market.

One of the most significant developments impacting global supply is China's government stockpiling activity. Reports indicate that the National Food and Strategic Reserves Administration has accumulated approximately 100 tonnes of germanium. This substantial volume has effectively removed a large portion of available material from the open market, exacerbating price volatility and fuelling concerns about long-term accessibility.

Outside of China, Russia plays a secondary but notable role in global supply. Its production is also linked to zinc and coal operations, and while its overall volume is limited, Russia maintains domestic refining capabilities and acts as a strategic supplier to certain allied nations. Its position has gained greater attention amid shifting trade alignments and geopolitical tensions.

The United States, while not producing primary germanium, remains an important player in refining and recycling. Germanium is recovered domestically from imported concentrates and recycled materials, particularly from end-of-life fibre optics, electronics, and military equipment. U.S. producers focus on supplying high-purity germanium for applications in defence, aerospace, and semiconductors. Recognising its strategic importance, the U.S. government has designated germanium as a critical mineral and is pursuing measures to support domestic capacity, diversify sources, and strengthen supply chain resilience through stockpiling and R&D.

In addition to geopolitical risks and production bottlenecks, the market is also under pressure from rising demand across sectors such as telecommunications, infrared optics, power electronics, and space-based solar technologies. As these applications expand, the strategic importance of germanium in securing next-generation technologies continues to grow—intensifying competition for reliable, long-term supply.

Germanium substitution

Silicon and gallium arsenide are becoming preferred alternatives to germanium in electronic applications, offering superior performance in high-frequency electronics and certain LED technologies. Chalcogenide glass is also making strides as a germanium substitute in infrared technologies, promising cost-efficiency and enhanced functionality. Antimony and titanium are emerging as effective substitutes for polymerisation catalysis, reflecting a shift towards materials that provide environmental benefits and improved efficiency.